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Culture War Roundup for the week of November 4, 2024

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OpenAI Shifts Strategy to Slower, Smarter AI as GPT Scaling Limits Emerge, OpenAI's upcoming Orion model shows how GPT improvements are slowing down

Paywalled, but here's a summary from reddit:

"Some OpenAI employees who tested Orion report it achieved GPT-4-level performance after completing only 20% of its training, but the quality increase was smaller than the leap from GPT-3 to GPT-4, suggesting that traditional scaling improvements may be slowing as high-quality data becomes limited

  • Orion's training involved AI-generated data from previous models like GPT-4 and reasoning models, which may lead it to reproduce some behaviors of older models
  • OpenAI has created a "foundations" team to develop new methods for sustaining improvements as high-quality data supplies decrease
  • Orion's advanced code-writing features could raise operating costs in OpenAI's data centers, and running models like o1, estimated at six times the cost of simpler models, adds financial pressure to further scaling
  • OpenAI is finishing Orion's safety testing for a planned release early next year, which may break from the "GPT" naming convention to reflect changes in model development

“Some researchers at the company believe Orion isn’t reliably better than its predecessor in handling certain tasks, according to the employees. Orion performs better at language tasks but may not outperform previous models at tasks such as coding, according to an OpenAI employee. That could be a problem, as Orion may be more expensive for OpenAI to run in its data centers compared to other models it has recently released, one of those people said.”

This is one of several articles/posts/tweets coming out of the LLMsphere over the past couple of weeks that are renewing concerns over LLMs hitting diminishing returns.

Of course this is just speculation until OpenAI actually releases Orion (or whatever they end up calling it). And really we would need several models past Orion too to actually extrapolate a pattern. But this does fit with my subjective impression that the leap from GPT-3 to GPT-4 was not as big as the leap from GPT-2 to GPT-3, and the leap from 4 to o1 was not as big as the leap from 3 to 4. The fact that they're considering again releasing a new model without calling it GPT-5 is also telling. They know how psychologically important the "GPT-5" moniker has become at this point and they won't give that name to a model unless it really represents a major leap forward.

AI is still limited to text boxes and text manipulation or content generation; it has failed to live up the hype otherwise, like life extension, replacing workers, or treating disease, imho. The point of diminishing returns has been reached. it will take a whole new paradigm for AI to make the next leap. As far as transforming writing papers for college students, yeah, it has totally crushed that, and even then teachers are wising up. [If AI is able to produce a fiction novel that is a best-seller and or critically acclaimed either with text prompts or feeding it samples of other novels, I will be sold]

it has failed to live up the hype otherwise, like life extension, replacing workers, or treating disease, imho.

Tesla is all-in on reinforcement learning for their next generation of Optimus robots, but they only spun that team up this summer. When I heard this news the stock price was at like 180 and I bought some calls for 230/250/270 for next June. After some movement I pushed these up to 300. Yet this still looks way too pessimistic. I think some exposure to $500c by the end of next year might be warranted.

The TSLA call options so expensive though. I like the 2x leveraged TSLA ETF instead. if TSLA doubles the ETF in theory will gain 3.5-4x, maybe offset decay by selling a long-dated ATM put + call

It looks like I was too pessimistic, 500 by the end of THIS year is in play